The resolution on fiscal measures in connection with the corona crisis has been further specified and explained.
Fiscal corona reserve
For corporate income tax purposes, the expected ‘corona-related’ loss for the financial year 2020 (hereafter: ‘2020’) may be taken into account when determining the profit for the financial year 2019 (hereafter: ‘2019’). This is done through the formation of a ‘corona reserve’.
In order to be able to make use of this facility, a number of conditions must be met, including
- The expected loss for 2020 must be a consequence of the corona crisis.
- The expected loss must not exceed the total loss expected for 2020. The reserve may therefore not be constituted if a 2020 profit is expected.
- The reserve must not exceed the 2019 profit.
- The loss taken into account in 2019 must be fully included in the 2020 profit.
If the corporate income tax return for the year 2019 has already been filed a amended return including the reserve cab be filed. When preparing the financial statements for 2019, we will, of course, investigate whether it is possible to form a corona reserve.
Normative salary (gebruikelijk loon)
A director and major shareholder may reduce its normative salary in 2020. The resolution includes a calculation based on which the 2020 normative salary can be reduced. In addition, approval is subject to three conditions:
- The current account debt or dividend will not increase as a result of the lower normative salary.
- If the director and major shareholder has actually received more salary than is apparent from the calculation, the higher salary will apply.
- The approval does not apply to the extent that the turnover in the year 2019 or 2020 was affected by other causes than the coronacrisis.
Entrepreneurs liable to income tax may, under certain conditions, claim various business facilities. For some of these entrepreneurial facilities, the so-called hour criterion (spending 1,225 hours per year on the company) must be met. In connection with the corona virus, entrepreneurs in the period 1 March to 31 May 2020 will be deemed to have spent at least 24 hours a week on the business, even if these entrepreneurs did not actually spend these hours in view of the corona crisis. A supplementary arrangement will also be made for seasonal entrepreneurs, whereby the number of hours will be linked to the hours spent in the same period in 2019 and before.
Work-related costs scheme (werkkostenregeling)
For the first EUR 400,000 of the wage and salary bill per employer, the discretionary scope of the work-related costs scheme will be increased once and temporarily from 1.7% to 3% for the year 2020.
Deferral of mortgage
It will be temporarily possible to obtain deferral of mortgage payments without losing the right to mortgage interest relief for the owner-occupied home. This mortgage payment break must be agreed with the bank and is valid for a maximum period of six months. The payment break must commence no later than 1 July 2020.
On the basis of the TOGS, entrepreneurs are, under certain conditions, eligible for an allowance of EUR 4,000 . It has been indicated that this is a one-off, tax-free gift.